Jefferies upgraded JWN to "buy" from "hold"
The shares of Nordstrom Inc (NYSE:JWN) are up 4.4% at $18.77 at last glance, after an upgrade from Jefferies to "buy" from "hold," with a price-target hike to $24 from $21. The firm also downgraded Kohl's (KSS), pointing to JWN's greater exposure to high-income shoppers unaffected by inflation. Of the 14 analysts in coverage, however, 12 still carry a "hold" or worse rating on Nordstrom stock.
On the charts, the stock has struggled to rebound from its late-August bear gap, after which it fell to a Sept.1, 21-month low of $16.83. Overhead pressure at the descending 20-day moving average helped reject JWN's most recent rally as well. Year-to-date, the equity is down 17.6%.
Over in the options pits, bulls rule the roost. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), JWN sports a 10-day call/put volume ratio of 7.68. This ratio ranks higher than 99% of readings from the past year, showing calls being picked up at a much faster-than-usual rate. During this time, the weekly 9/2 18-strike call saw the most activity.
There is plenty of short squeeze potential surrounding the security, as short interest makes up 21.8% of the stock's available float. It would take nearly four days to cover, at JWN's average pace of trading.